Cummingm

Chart of Accounts
Cash
Date
Inventory
1/1/2015
Property/Plant/Equipment
2/1/2015
Accounts Payable
3/1/2015
Common Stock
4/1/2015
Retained Earnings
Revenue
Cost of Revenue
4/1/2015
Balance Sheet Check
Balanced
Cashflows Check
Balanced
EFFECTS OF TRANSACTIONS ON ACCOUNTS

Amount
Transaction
Issues common shares for cash
Purchase equipment with cash
Purchase inventory on account
Sells merchandise for cash
Record the effect of sale on inventory
10,000
1,500
700
320
200
Income Statement
Revenue
Cost of Revenue
Net Income
320
200
120
Balance Sheet
Assets
Cash
Inventory
Total Assets
Accounts Payable
Total Liabilities
Common Stock
Retained Earnings
Total Equity
Total Liabilities and Equity
Statements of Cashflows
Operating Activities
Cash from Operating Activities
Investing Activities
Cash from Investing Activities
Financing Activities
Cash from Financing Activities
Net Change in Cash
8,820
500
1,500
10,820
700
700
10000
120
10120
10820
320
320
-1,500
-1500
10,000
10,000
8,820

DR
Cash
CR
Balance
BB
10,000 Common Stock
10,000
1,500 Cash
1,500
Inventory
700 Accounts Payable
700
Cash
320 Revenue
320
Cost of Revenue
200 Inventory
200
EB
Cash
DR + CR0
Inventory
DR+ CR0
Property/Plant/
Accounts
Common
Retained
Equipment
Payable
Stock
Earnings
DR+
CRDRCR+ DRCR+
DR0
0
0
10000
10000
1,500
1500
700
700
320
200
8,820
500
1,500
700
10000
Retained
Earnings
CR+
Revenue
DRCR+
0
Cost of Revenue
DR+
CR0
0
320
200
320
200
Chart of Accounts
Cash
Date
Inventory
1/1/2015
2/1/2015
Accounts Payable
5/1/2015
Common Stock
6/1/2015
Retained Earnings
Revenue
Cost of Revenue
6/1/2015
Balance Sheet Check
Balanced
Cashflows Check
Balanced
EFFECTS OF TRANSACTIONS ON
Amount
Transaction
Issues common stock for cash
Pays to purchases equipment
Purchase inventory on account from a supplier
Sells merchandise for cash. Record the revenue
Record the cost of revenue for this sale.
101,042
59,249
50,379
63,377
37,280
Income Statement
Revenue
Cost of Revenue
Net Income
63377
37,280
26,097
Balance Sheet
Assets
Cash
Inventory
Total Assets
Accounts Payable
Total Liabilities
Common Stock
Retained Earnings
Total Equity
Sells merchandise for cash. Record the revenue
Net Change in Cash
105,170
13,099
59,249
177,518
50379
50379
101042
26097
127139
177518
63377
63377
-59,249
-59,249
101,042
101,042
105,170

DR
Cash
CR
101042 Common Stock
59,249 Cash
Inventory
50,379 Accounts Payable
Balance
BB
101,042
59,249
50379
Cash
63377 Revenue
63377
Cost of Revenue
37280 Inventory
37280
EB
DR +
Cash
CR0
Inventory
DR+
CR0
Property/Plant/
Accounts
Equipment
Payable
DR+
CRDRCR+
0
Common Stock
DRCR+
0
0
101042
101042
59,249
59249
50379
50379
63377
37280
105,170
13,099
59,249
50379
101042
Retained
Earnings
DRCR+
Revenue
DRCR+
0
Cost of Revenue
DR+
CR0
0
63377
37280
63377
37,280
Chart of Accounts
Cash (A)
Date
Inventory (A)
1/1/2015
Paid Rent Expense (A)
2/1/2015
Property/Plant/Equipment (A)
3/1/2015
Accumulated Depreciation (XA)
4/1/2015
Accounts Payable (L)
4/1/2015
Deferred Revenue (L)
7/1/2015
Interest Payable (L)
7/1/2015
Note Payable (L)

Common Stock (SE)
Retained Earnings (SE)
Revenue (RE)
Cost of Revenue (Ex)
Depreciation Expense (Ex)
Rent Expense (Ex)
Interest Expense (Ex)
7/1/2015

Amount
Transaction
200,000
40,000
50,000
65,000
42,000
Borrows from bank for 5 years interest is 12%

and payable annually on July 1
44,000
Received cash from customer for services it

will preform next year
24,000
Pays landlord for rent for the next year
12,000
Balanced
Income Statement
Revenue (RE)
Rent Expense (Ex)
Net Income
65000
42,000
0
0
0
23,000
Balance Sheet
Cash (A)
Inventory (A)
Total Assets
281,000
8,000
12,000
40,000
0
341,000
50000

Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
0
0
68000
118,000
200000
23,000
223000
341,000
Balanced
65000

200,000

44000
244,000
Net Change in Cash
281,000
24000
-12,000
77000
-40,000
-40000

DR
Cash (A)
CR
200,000 Common Stock (SE)
Balance
BB
200,000
40,000 Cash (A)
40,000
Inventory (A)
50,000 Accounts Payable (L)
50,000
Cash (A)
65000 Revenue (RE)
65,000
42000 Inventory (A)
42,000
Cash (A)
44000 Note Payable (L)
44,000
Cash (A)
24000 Deferred Revenue (L)
24,000
12,000 Cash (A)
12,000
EB
Cash (A)
DR +
CR0
Inventory (A)
DR+
CR0
Paid Rent
Expense (A)
DR+
CR0
Accumulated
Property/Plant/E Depreciation
quipment (A)
(XA)
DR+
CRDR0
200,000
40,000
40,000
50,000
65000
42,000
44000
24000
12,000
281,000
12,000
8,000
12,000
40,000
Accumulated
Depreciation
Accounts
Deferred
Interest
(XA)
Payable (L)
Revenue (L)
Payable (L)
Note Payable (L)
CR+
DRCR+
DRCR+
DRCR+
DRCR+
0
0
0
0
0
50,000
44,000
24,000
50000
68000
Common Stock
(SE)
DRCR+
Retained Earnings
(SE)
Revenue (RE)
DRCR+
DRCR+
0
0

DR+
CR0
0
200,000
65,000
42000
200000
65000
42,000
Depreciation Expense
(Ex)
Rent Expense (Ex)
DR+
CRDR+
CR0
0

DR+
CR0
Chart of Accounts
Cash (A)
Date
Inventory (A)
1/1/2015
2/1/2015
5/1/2015
6/1/2015
6/1/2015
7/1/2015
7/1/2015
Note Payable (L)

Common Stock (SE)
Revenue (RE)
Rent Expense (Ex)
7/1/2015
EFFECTS OF TRANSACTIONS ON ACCOU

Amount
Transaction
Purchases inventory on account from a supplier
Record the Cost of Revenue for this sale
412,661
89,688
42,564
42,419
28,092
Borrows from a bank for 5 years. The interest rate

on the note is 6% and payable annually
68,413
Received cash from customer for services it will

perform next year
40,550
22,807
Balanced
Income Statement
Revenue (RE)
Rent Expense (Ex)
Net Income
42419
28,092
0
0
0
14,327
Balance Sheet
Cash (A)
Inventory (A)
Total Assets
451,548
14,472
22,807
89,688
0
578,515
42564

Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
40550
0
68413
151,527
412661
14,327
426988
578,515
Balanced
42419
Received cash from customer for services it will

perform next year
412,661
Borrows from a bank for 5 years. The interest rate

on the note is 6% and payable annually
68413
481,074
Net Change in Cash
451,548
40550
-22,807
60162
-89,688
-89688

DR
Cash (A)
CR
412,661 Common Stock (SE)
Balance
BB
412,661
89,688 Cash (A)
89,688
Inventory (A)
42,564 Accounts Payable (L)
42,564
Cash (A)
42419 Revenue (RE)
42,419
28092 Inventory (A)
28,092
Cash (A)
68413 Note Payable (L)
68,413
Cash (A)
40550 Deferred Revenue (L)
40,550
22,807 Cash (A)
22,807
EB
Cash (A)
DR +
CR0
Inventory (A)
DR+
CR0
Paid Rent
Expense (A)
DR+
CR0
Accumulated
Property/Plant/E Depreciation
quipment (A)
(XA)
DR+
CRDR0
412,661
89,688
89,688
42,564
42419
28,092
68413
40550
22,807
451,548
22,807
14,472
22,807
89,688
Accumulated
Depreciation
Accounts
Deferred
Interest
(XA)
Payable (L)
Revenue (L)
Payable (L)
Note Payable (L)
CR+
DRCR+
DRCR+
DRCR+
DRCR+
0
0
0
0
0
42,564
68,413
40,550
42564
40550
68413
Common Stock
(SE)
DRCR+
Retained Earnings
(SE)
Revenue (RE)
DRCR+
DRCR+
0
0

DR+
CR0
0
412,661
42,419
28092
412661
42419
28,092
(Ex)
Rent Expense (Ex)
DR+
CRDR+
CR0
0

DR+
CR0
Chart of Accounts
Cash (A)
Date
Inventory (A)
1/1/2015
Prepaid Rent Expense (A)
2/1/2015
3/1/2015
4/1/2015
4/1/2015
7/1/2015
7/1/2015
Note Payable (L)

Common Stock (SE)
Revenue (RE)
7/1/2015
12/31/2015
12/31/2015

Rent Expense (Ex)
12/31/2015
12/31/2015

Transaction
Amount

Purchase equipment with cash. Equipment has
useful life of 10 years.
200,000
40,000
50,000
65,000
42,000

44,000

24,000
12,000

Balances before adjusting entries

Record Interest Expense
Record Rent Expense
Balances after adjusting entries
Close Income Statement Accounts
4,000
2,640
6,000
Balanced
Income Statement
Revenue (RE)
Rent Expense (Ex)
Net Income
Balance Sheet
Unadjusted
Trial Balance
65000
42,000
0
0
0
23,000
Cash (A)
Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
281,000
8,000
12,000
40,000
0
341,000
50000
24000
0
44000
118,000
200000
23,000
223000
341,000
Balanced
65000
24000
-12,000
77000

200,000

44000
244,000
Net Change in Cash
281,000
-40,000
-40000

DR
Cash (A)
200,000
40,000
Inventory (A)
50,000
Cash (A)
65000
42000
Cash (A)
44000
Cash (A)
24000
12,000
4,000
2,640
Rent Expense (Ex)
6,000
Revenue (RE)
Rent Expense (Ex)
65000
Balanced
Post Closing
Balance
Adjusted Trial Balance

65000
42,000
4,000
6,000
2,640
10,360
0
0
0
0
0
0
281,000
8,000
6,000
40,000
-4,000
331,000
50000
24000
2640
44000
120640
200000
10,360
210360
331000
281,000
8,000
6,000
40,000
-4,000
331,000
50000
24000
2640
44000
120640
200000
10360
210360
331000
CR
Balance
BB
Common Stock (SE)
Cash (A)
DR +
CR0
Inventory (A)
DR+
0
200,000 200,000
Cash (A)
40,000
50,000
Revenue (RE)
65,000
Inventory (A)
42,000
Note Payable (L)
44,000
44000
24,000
24000
Cash (A)
12,000
4,000
2,640
6,000
42,000
4,000
6,000
2,640
10360
40,000
50,000
65000
12,000
281,000
8,000
281,000
8,000
281,000
8,000
65000
42,000
4,000
6,000
2,640
10360
Inventory (A)
CR-
Prepaid Rent
Expense (A)
DR+
CR0
Accumulated
Property/Plant/Equ Depreciation
Accounts
Deferred
ipment (A)
(XA)
Payable (L)
Revenue (L)
DR+
CRDRCR+
DRCR+
DR0
0
0
40,000
50,000
42,000
12,000
12,000
40,000
50000
4,000
6,000
6,000
40,000
4,000
50000
6,000
40,000
4,000
50000
Deferred
Revenue (L)
CR+
Interest Payable
Common Stock
Retained Earnings
(L)
Note Payable (L)
(SE)
(SE)
DRCR+
DRCR+
DRCR+
DR0
0
0
0
200,000
44,000
24,000
24000
44000
200000
2,640
24000
2640
44000
200000
24000
2640
44000
200000
Retained Earnings
(SE)
Revenue (RE)
CR+
DRCR+
0
(Ex)
Rent Expense (Ex)
DR+
CRDR+
CRDR+
0
0
0
0
65,000
42000
65000
42,000
4,000
65000
42,000
6,000
6,000
4,000
65000
42,000
4,000
10360
10360
Rent Expense (Ex)

CR-

DR+
CR0
2,640
2,640
6,000
2,640
0
Chart of Accounts
Cash (A)
Date
Inventory (A)
1/1/2015
2/1/2015
3/1/2015
4/1/2015
4/1/2015
7/1/2015
7/1/2015
Note Payable (L)

Common Stock (SE)
Revenue (RE)
7/1/2015
12/31/2015
12/31/2015

Rent Expense (Ex)
12/31/2015
12/31/2015

Transaction
Amount

361,311
16,036
59,737
57,204
34,050
Borrows from bank for 5 years interest is 5.5%

41,993

41,921
Pays landlord for rent for the next year.

Beginning this month
10,818

Record Rent Expense
1,145
1,155
5,409
Balanced
Income Statement
Revenue (RE)
Rent Expense (Ex)
Net Income
Unadjusted
Trial Balance
57204
34,050
0
0
0
23,154
Balance Sheet
Cash (A)
Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
Pays landlord for rent for the next year.
Beginning this month
475,575
25,687
10,818
16,036
0
528,116
59737
41921
0
41993
143,651
361311
23,154
384465
528,116
Balanced
57204
41921
-10,818
88307

361,311
Borrows from bank for 5 years interest is 5.5%

41993
403,304
Net Change in Cash
475,575
-16,036
-16036

DR
Cash (A)
361,311
16,036
Inventory (A)
59,737
Cash (A)
57204
34050
Cash (A)
41993
Cash (A)
41921
10,818
1,145
1,155
Rent Expense (Ex)
5,409
Revenue (RE)
Rent Expense (Ex)
57204
Balanced
Post Closing
Balance

57204
34,050
1,145
5,409
1,155
15,445
0
0
0
0
0
0
475,575
475,575
25,687
25,687
5,409
5,409
16,036
16,036
-1,145
-1,145
521,562
521,562
59737
59737
41921
41921
1154.8075
1154.8075
41993
41993
144805.8075
144805.8075
361311
361311
15,445 15444.7639286
376755.763928571 376755.763929
521561.571428571 521561.571429
CR
Balance
BB
Common Stock (SE)
Cash (A)
DR +
CR0
Inventory (A)
DR+
0
361,311 361,311
Cash (A)
16,036
59,737
Revenue (RE)
57,204
Inventory (A)
34,050
Note Payable (L)
41,993
41993
41,921
41921
Cash (A)
10,818
1,145
1,155
5,409
16,036
59,737
57204
10,818
475,575
25,687
475,575
25,687
475,575
25,687
57204
34,050
34,050
1,145
1,145
5,409
5,409
1,155
1,155
15444.7639285714 15444.764
Inventory (A)
CR-
Prepaid Rent
Expense (A)
DR+
CR0
Accumulated
Property/Plant/Equ Depreciation
Accounts
Deferred
ipment (A)
(XA)
Payable (L)
Revenue (L)
DR+
CRDRCR+
DRCR+
DR0
0
0
16,036
59,737
34,050
10,818
10,818
16,036
59737
1,145
5,409
5,409
16,036
1,145
59737
5,409
16,036
1,145
59737
Deferred
Revenue (L)
CR+
Interest Payable
Common Stock
Retained Earnings
(L)
Note Payable (L)
(SE)
(SE)
DRCR+
DRCR+
DRCR+
DR0
0
0
0
361,311
41,993
41,921
41921
41993
361311
1,155
41921
1154.81
41993
361311
41921
1154.81
41993
361311
Retained Earnings
(SE)
Revenue (RE)
CR+
DRCR+
0
(Ex)
Rent Expense (Ex)
DR+
CRDR+
CRDR+
0
0
0
0
57,204
34050
57204
34,050
1,145
57204
34,050
5,409
5,409
1,145
57204
34,050
1,145
15444.764
15444.764
Rent Expense (Ex)

CR-

DR+
CR0
1,155
1,155
5,409
1,155
0
Chart of Accounts
Cash (A)
Date
Accounts Receivable (A)
1/1/2015
Allowances for Doubtful Accounts (XA)
2/1/2015
Inventory (A)
3/1/2015
4/1/2015
4/1/2015
7/1/2015
7/1/2015
Note Payable (L)

Common Stock (SE)
7/1/2015

Revenue (RE)
12/31/2015
12/31/2015

Bad Debt Expense (Ex)
12/31/2015
12/31/2015

Transaction
Amount

100,000
Sells merchandise for credit
20,000
30,000
70,000
18,000

22,000
Received cash from customer for paying off

Accounts Receivable
7,000
Write off customer account

1,500
2,000
770
Bad Debt Expense. Estimate 4% on Accounts

Receivable will not be collectable.
3,960
Balanced
Income Statement
Revenue (RE)
Unadjusted
Trial Balance
70000
18,000
0
0
0
Net Income
52,000
Balance Sheet
Cash (A)
109,000

Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
61,500
1500
12,000
20,000
0
204,000
30000
0
22000
52,000
100000
52,000
152000
204,000

DR
Cash (A)
100,000
20,000
Inventory (A)
30,000
70,000
18,000
Cash (A)
22,000
Cash (A)
7,000
Allowances for Doubtful Accounts

(XA)
1,500

2,000
770
3,960
Revenue (RE)
70000
Balanced
Balanced
Post Closing
Balance

70000
18,000
2,000
3,960
770
0
0
0
0
0
45,270
109,000
109,000
61,500
-2,460
12,000
20,000
-2,000
198,040
30000
770
22000
52770
100000
45,270
145270
198040
61,500
-2,460
12,000
20,000
-2,000
198,040
30000
770
22000
52770
100000
45270
145270
198040
CR
Cash (A)
DR +
CR0
Balance
BB
Common Stock (SE)
100,000
100,000
Cash (A)
20,000
30,000
Revenue (RE)
70,000
Inventory (A)
18,000
Note Payable (L)
22,000
22,000
7,000
7,000
1,500



20,000
70,000
109,000
61,500
109,000
61,500
109,000
61,500
2,000
770
3,960
18,000
2,000
3,960
770
45,270
Balanced
Received cash from customer for paying
off Accounts Receivable
Accounts
Receivable (A)
DR+
0
7,000
7000
Purchase equipment with cash. Equipment

has useful life of 14 years.
100,000
Borrows from bank for 5 years interest is

7% and payable annually on July 1
22,000
122,000
Net Change in Cash
109,000
-20,000
-20,000
Accounts
Receivable (A)
CR-
Allowances for
Doubtful Accounts
(XA)
Inventory (A)
DRCR+
DR+
CR0
0
Accumulated
Property/Plant/Equi Depreciation
pment (A)
(XA)
DR +
CRDRCR+
0
0
20,000
30000
18000
7,000
1,500
1,500
-1500
12,000
20,000
0
2,000
3,960
2,460
12,000
20,000
2,000
2,460
12,000
20,000
2,000
Accounts
Payable (L)
DRCR+
Interest Payable
Retained Earnings
(L)
Note Payable (L)
Common Stock (SE)
(SE)
DRCR+
DRCR+
DRCR+
DR0
0
0
0
100,000
30,000
22,000
30000
22000
100000
770
30000
770
22000
100000
30000
770
22000
100000
Retained Earnings
(SE)
CR+
Revenue (RE)
DRCR+
0
Depreciation Expense Bad Debt Expense

(Ex)
(Ex)
DR+
CRDR+
CRDR+
0
0
0
0
70,000
18,000
70000
18,000
2,000
70000
18,000
3,960
3,960
2,000
70000
18,000
2,000
45,270
45270
Bad Debt Expense

(Ex)
CR-

DR+
CR0
770
770
3,960
770
0
Chart of Accounts
Cash (A)
Date
1/1/2015

2/1/2015
Inventory (A)
3/1/2015
4/1/2015
4/1/2015

7/1/2015
Note Payable (L)
7/1/2015
7/1/2015
Common Stock (SE)

Revenue (RE)
12/31/2015
12/31/2015
12/31/2015
12/31/2015

Transaction
Amount

346,839
Sells merchandise for credit
19,634
79,550
59,456
29,434

42,388

Accounts Receivable
16,053

7,373
2,182
1,696
Bad Debt Expense. Estimate 4.2% on Accounts

Receivable will not be collectable.
8,886
Balanced
Income Statement
Revenue (RE)
Unadjusted
Trial Balance
59456
29,434
0
0
0
Net Income
30,022
Balance Sheet
Cash (A)
385,646

Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
36,030
7373
50,116
19,634
0
498,799
79550
0
42388
121,938
346839
30,022
376861
498,799

DR
Cash (A)
346,839
19,634
Inventory (A)
79,550
59,456
29,434
Cash (A)
42,388
Cash (A)
16,053

(XA)
7,373

2,182
1,696
8,886
Revenue (RE)
59456
Balanced
Balanced
Post Closing
Balance

59456
29,434
2,182
8,886
1,696
0
0
0
0
0
17,259
385,646
385,646
36,030
36,030
-1,513
-1,513
50,116
50,116
19,634
19,634
-2,182
-2,182
487,731
487,731
79550
79550
1695.52
1695.52
42388
42388
123633.52
123633.52
346839
346839
17,259 17258.6644444
364097.664444444 364097.664444
487731.184444445 487731.184444
CR
Balance
BB
Common Stock (SE)
346,839
Cash (A)
DR +
CR0
346,839
Cash (A)
19,634
79,550
Revenue (RE)
59,456
Inventory (A)
29,434
Note Payable (L)
42,388
42,388
16,053
16,053
7,373



19,634
59,456
385,646
36,030
385,646
36,030
385,646
36,030
2,182
1,696
8,886
29,434
2,182
8,886
1,696
17,259
Balanced
Received cash from customer for paying
off Accounts Receivable
Accounts
Receivable (A)
DR+
0
16,053
16053
Purchase equipment with cash. Equipment

has useful life of 9 years.
346,839
Borrows from bank for 5 years interest is

8% and payable annually on July 1
42,388
389,227
Net Change in Cash
385,646
-19,634
-19,634
Accounts
Receivable (A)
CR-
Allowances for
Doubtful Accounts
(XA)
Inventory (A)
DRCR+
DR+
CR0
0
Accumulated
Property/Plant/Equi Depreciation
pment (A)
(XA)
DR +
CRDRCR+
0
0
19,634
79550
29434
16,053
7,373
7,373
-7373
50,116
19,634
0
2,182
8,886
1,513
50,116
19,634
2,182
1,513
50,116
19,634
2,182
Accounts
Payable (L)
DRCR+
Interest Payable
Retained Earnings
(L)
Note Payable (L)
Common Stock (SE)
(SE)
DRCR+
DRCR+
DRCR+
DR0
0
0
0
346,839
79,550
42,388
79550
42388
346839
1,696
79550
1695.52
42388
346839
79550
1695.52
42388
346839
Retained Earnings
(SE)
CR+
Revenue (RE)
DRCR+
0

(Ex)
(Ex)
DR+
CRDR+
CRDR+
0
0
0
0
59,456
29,434
59456
29,434
2,182
59456
29,434
8,886
8,886
2,182
59456
29,434
2,182
17,259
17258.664
Bad Debt Expense

(Ex)
CR-

DR+
CR0
1,696
1,696
8,886
1,696
0
Chart of Accounts
Cash (A)
Date
1/1/2015
1/1/2015
Inventory (A)
3/1/2015
4/1/2015
4/1/2015
7/1/2015
Income Tax Payable (L)
7/1/2015
Note Payable (L)

Common Stock (SE)
7/1/2015
12/31/2015
Revenue (RE)
12/31/2015

Income Tax Expense (Ex)
12/31/2015
12/31/2015
EFFECTS OF TRANSACTIONS
Transaction
Amount
Purchases 1000 yoga mats for $35 each for cash
35,000
44,000
54,000

Sells 2970 yoga mats for $72 each on account
213,840
Record effect of sale on Inventory assume company uses

first in first out cost flow method (FIFO)
118,150
Pays balance due on purchase 02-01

Received cash from customer for paying off Accounts
Receivable
44,000
100,000

7,000
Depreciation Expense. Equipment has useful life of 6 years
5,000
Bad Debt Expense. Estimate 4% on Accounts Receivable

will not be collectable.
Record Income Tax Expense. Tax rate is 30%
11,194
23,849
Balanced
Income Statement
Revenue (RE)
Unadjusted
Trial Balance
213840
118,150

Income before taxes
Net Income
0
0
95,690
0
95,690
Balance Sheet
Cash (A)
Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
121,000
109,840
6800
14,850
30,000
-5000
277,490
54000
0
0
54,000
100000
123,490
223490
277,490

DR
Inventory (A)
35,000
Inventory (A)
44,000
Inventory (A)
54,000
213,840
118,150
44,000
Cash (A)
100,000

(XA)
7,000
5,000
11,194
23,849
Revenue (RE)
213840
Balanced
Balanced

213840
118,150
Post Closing
Balance
0
0
5,000
11,194
79,496
23,849
55,647
0
0
0
0
0
121,000
109,840
-4,394
14,850
30,000
-10,000
261,296
54000
23848.92
0
77848.92
100000
83,447
183447.48
261296.4
121,000
109,840
-4,394
14,850
30,000
-10,000
261,296
54000
23848.92
0
77848.92
100000
83447.48
183447.48
261296.4
CR
Balance
BB
Cash (A)
35,000
44,000
54,000
Revenue (RE)
213,840
Inventory (A)
118,150
Cash (A)
Cash (A)
DR +
CR100,000
35,000
44,000
100,000
7,000
44,000
100,000
121,000
5,000
11,194
23,849
121,000

118,150
5,000
11,194
23,849
55,647
121,000
Operating1000
Activities
Purchases
yoga mats for $35 each for
cash
Balanced
-35,000 Inventory Account

-44,000 Items
Cost per Item

Accounts Receivable
100,000
21000

Net Change in Cash
1000
1100
1200
3300
-2970
330
x
x
x
Total
Sold
Left
21,000
Comparison of Cost Flow

Methods FIFO
Cost of goods Available for Sale
Inventory (A)
LIFO
Avg Cost
133000
133000
133000
14850
11550
13300
118150
121450
119700
Allowances for
Accounts Receivable Doubtful Accounts
(A)
(XA)
Inventory (A)
DR+
CRDRCR+
DR+
CR3000
200
0
Property/Plant/Equi
pment (A)
DR +
CR30000
35000
44,000
54,000
213,840
118150
100,000
7,000
109,840
7,000
-6800
14,850
30,000
11,194
109,840
4,394
14,850
30,000
109,840
4,394
14,850
30,000
Cost per Item
Total
35
40
45
35000
44000
54000
133000
Accumulated
Depreciation
Income Tax Payable
(XA)
(L)
Note Payable (L)
DRCR+
DRCR+
DRCR+
DRCR+
5000
0
0
0
44,000
54,000
44,000
5000
54000
5,000
23,849
10,000
54000
23848.92
10,000
54000
23848.92
Retained Earnings
Common Stock (SE)
(SE)
Revenue (RE)
DRCR+
DRCR+
DRCR+
100000
27800

DR+
CR0
0
213,840
118,150
100000
27800
213840
118,150
100000
27800
213840
118,150
213840
118,150
100000
55,647
83447.48

(Ex)
(Ex)
DR+
CRDR+
CR0
0
Income Tax Expense

(Ex)
DR+
CR0
5,000
11,194
23,849
5,000
11,194
23,849
5,000
11,194
23,849
0
Chart of Accounts
Cash (A)
Date
1/1/2015
1/1/2015
Inventory (A)
3/1/2015
4/1/2015
4/1/2015
7/1/2015
7/1/2015
Note Payable (L)

Common Stock (SE)
7/1/2015
12/31/2015
Revenue (RE)
12/31/2015

12/31/2015
12/31/2015
EFFECTS OF TRANSACTIONS
Transaction
Amount
31,380
31,488
51,450

Sells 3544 yoga mats for $76 each on account
269,344
Record effect of sale on Inventory assume company uses

first in first out cost flow method (FIFO)
104,490
31,488
Received cash from customer for paying off Accounts

Receivable
79,726

Depreciation Expense. Equipment has useful life of 9 years
Bad Debt Expense. Estimate 8% on Accounts Receivable
will not be collectable.
Record Income Tax Expense. Tax rate is 32%
16,430
3,333
30,325
41,983
Balanced
Income Statement
Revenue (RE)
Unadjusted
Trial Balance
269344
104,490

Income before taxes
Net Income
0
0
164,854
0
164,854
Balance Sheet
Cash (A)
Inventory (A)
Total Assets
Note Payable (L)
Total Liabilities
Common Stock (SE)
Total Equity
116,858
176,188
16230
9,828
30,000
-5000
344,104
51450
0
0
51,450
100000
192,654
292654
344,104

DR
Inventory (A)
31,380
Inventory (A)
31,488
Inventory (A)
51,450
269,344
104,490
31,488
Cash (A)
79,726

(XA)
16,430
3,333
30,325
41,983
Revenue (RE)
269344
Balanced
Balanced

269344
104,490
Post Closing
Balance
0
0
3,333
30,325
131,196
41,983
89,213
0
0
0
0
0
116,858
176,188
-14,095
9,828
30,000
-8,333
310,446
51450
41982.6005333333
0
93432.6005333334
100000
117,013
217013.026133333
310445.626666667
116,858
176,188
-14,095
9,828
30,000
-8,333
310,446
51450
41982.6005333
0
93432.6005333
100000
117013.026133
217013.026133
310445.626667
CR
Balance
BB
Cash (A)
31,380
31,488
51,450
Revenue (RE)
269,344
Inventory (A)
104,490
Cash (A)
31,488
79,726
16,430
Cash (A)
DR +
CR100,000
31,380
31,488
79,726
116,858
3,333
30,325
41,983
116,858

104,490
3,333
30,325
41,983
89,213
116,858
Operating1569
Activities
Purchases
yoga mats for $20 each for
cash
Balanced
-31,380 Inventory Account

-31,488 Items
Cost per Item

Accounts Receivable
79,726
16858

Net Change in Cash
1569
984
1225
3778
-3544
234
x
x
x
Total
Sold
Left
16,858
Comparison of Cost Flow

Methods FIFO
Cost of goods Available for Sale
Inventory (A)
LIFO
Avg Cost
114318
114318
114318
9828
4680 7080.5749
104490
109638 107237.43
Allowances for
Accounts Receivable Doubtful Accounts
(A)
(XA)
Inventory (A)
DR+
CRDRCR+
DR+
CR3000
200
0
Property/Plant/Equi
pment (A)
DR +
CR30000
31380
31,488
51,450
269,344
104490
79,726
16,430
176,188
16,430
-16230
9,828
30,000
30,325
176,188
14,095
9,828
30,000
176,188
14,095
9,828
30,000
Cost per Item
Total
20
32
42
31380
31488
51450
114318
Accumulated
Depreciation
Income Tax Payable
(XA)
(L)
Note Payable (L)
DRCR+
DRCR+
DRCR+
DRCR+
5000
0
0
0
31,488
51,450
31,488
5000
51450
3,333
41,983
8,333
51450
41982.6
8,333
51450
41982.6
Retained Earnings
Common Stock (SE)
(SE)
Revenue (RE)
DRCR+
DRCR+
DRCR+
100000
27800

DR+
CR0
0
269,344
104,490
100000
27800
269344
104,490
100000
27800
269344
104,490
269344
104,490
100000
89,213
117013

(Ex)
(Ex)
DR+
CRDR+
CR0
0
Income Tax Expense

(Ex)
DR+
CR0
3,333
30,325
41,983
3,333
30,325
41,983
3,333
30,325
41,983
0
Chart of Accounts
Cash (A)
Date
4/1/2015
4/1/2015
Intangibles (A)
4/1/2015
Accumulated Amortization (XA)
4/1/2015
4/1/2015
7/1/2015
Common Stock (SE)
7/1/2015
12/31/2015
Revenue (RE)
12/31/2015

Amortization Expense (Ex)
Gain on sale of PPE (Ga)
Loss on sale of PPE (Lo)
12/31/2015
12/31/2015
EFFECTS OF TRANSACT
Transaction
Amount
Pays $130,000 to purchase equipment, have it delivered for

$12,000 and installed for $8,000. Estimated useful life is 8 years
and no residual value.
150,000
Pays 250,000 to purchase property that includes a building

valued at $75,000 and land valued at $175,000. The building has
an estimated useful life of 20 years and residual value of $5,000
250,000
Pays $30,000 for a customer list for future sale prospects. The
list has an estimated useful life of 5 years.
30,000
Sells land that has a carrying value of $103,000 for $158,000
Sells machine that has carrying value of $5,000. (cost =15,000

and accumulated depreciation = $10,000) for $2,000 cash
18,750
Depreciation Expense for equipment
3,500
6,000
Depreciation Expense for building

Amortization expense on customer list.
*Error*
Income Statement
Revenue (RE)
Net Income
Unadjusted
Trial Balance
80000
55,000
0
3,000
0
132,000
Balance Sheet
Cash (A)
510,000
522,000
-80000
Intangibles (A)
30,000
0
Total Assets
Total Liabilities
Common Stock (SE)
Total Equity
982,000
0
0
850000
212,000
1062000
1,062,000

DR
150,000
250,000
Intangibles (A)
30,000
Cash (A)
158,000
Cash (A)
2,000
10,000
3,000
18,750
3,500
6,000
Revenue (RE)
80000
*Error*
55,000
*Error*
Post Closing
Balance

80000
55,000
22,250
3,000
6,000
0
0
0
0
0
103,750
510,000
510,000
522,000
522,000
-102,250
-102,250
30,000
-6,000
30,000
-6,000
953,750
0
953,750
0
0
850000
183,750
1033750
1033750
0
850000
183750
1033750
1033750
CR
Cash (A)
DR +
CR780,000
Balance
BB
Cash (A)
150,000
150,000
Cash (A)
250,000
250,000
Cash (A)
30,000
30,000
103,000
55,000
15,000
158,000
2,000
0
0
510,000
18,750
3,500
6,000
510,000

22,250
6,000
3,000
103,750
510,000
Balanced
Inventory Account
Items
Pays $130,000 to purchase equipment, have it
delivered for $12,000 and installed for $8,000.
Estimated useful life is 8 years and no residual
value.
Pays 250,000 to purchase property that
includes a building valued at $75,000 and land
valued at $175,000. The building has an
estimated useful life of 20 years and residual
value of $5,000
Cost per Item

x
x
x
-150,000
-250,000
Total
Sold
Pays $30,000 for a customer list for future sale

prospects. The list has an estimated useful life
of 5 years.
-30,000
Sells land that has a carrying value of $103,000

for $158,000
158,000 Comparison of Cost Flow
Sells machine that has carrying value of $5,000.

(cost =15,000 and accumulated depreciation =
$10,000) for $2,000 cash
2,000
Gain on sale of
PPE (Ga)
Net Change in Cash
0
-270,000
Left
Methods FIFO
Cost of goods
Available for
Sale
-270,000 Intangibles (A)
0
0
0
Property/Plant/Equipme
Accumulated
nt (A)
Depreciation (XA)
Intangibles (A)
DR+
CRDRCR+
DR+
CR240000
90000
0
DR +
CR-
150,000
250,000
30,000
103,000
15,000
10,000
522,000
80000
30,000
18,750
3,500
522,000
102,250
30,000
522,000
102,250
30,000
Cost per Item
Total
0
0
0
LIFO
Avg Cost
0
#DIV/0!
#DIV/0!
Accumulated
Amortization
(XA)
DRCR+

DRCR+
DR0
0
CR+
DR-
CR+
6,000
6,000
6,000
Retained Earnings
Gain on sale of PPE
Common Stock (SE)
(SE)
Revenue (RE)
(Ga)
DRCR+
DRCR+
DRCR+
DRCR+
850000
80000
80000
0
55,000
850000
80000
80000
55,000
850000
80000
80000
55,000
80000
55,000
850000
103,750
183750
Depreciation Expense Amortization Expense Loss on sale of PPE

(Ex)
(Ex)
(Lo)
DR+
CRDR+
CRDR+
CR0
0
0
3,000
3,000
18,750
3,500
6,000
22,250
6,000
3,000
22,250
6,000
3,000
Chart of Accounts
Cash (A)
Date
4/1/2015
4/1/2015
Intangibles (A)
4/1/2015
4/1/2015
4/1/2015
7/1/2015
Common Stock (SE)
7/1/2015
12/31/2015
Revenue (RE)
12/31/2015

12/31/2015
12/31/2015
EFFECTS OF TRANSACT
Transaction
Amount
Pays $89966 to purchase equipment, have it delivered for $3689

and installed for $6118. Has useful life of 10 years an no residual
value.
Pays $285151 to purchase property that includes a building

valued at $110639 and land valued at $174512. Building has
useful life of 17 years and residual value of $1798
Pays $31902 for a customer list for future sales prospects. The
list has an estimated useful life of 5 years no residual value.
99,773
285,151
31,902
Sells a plot of land that has a carrying value of $83369 for

$116690 cash
Sells a machine that has carrying value of of $5586 (cost =

$16625 and accumulated depreciation = $11039) for $2772 cash

9,977
Depreciation Expense for building
6,402
6,380
Amortization expense on customer list.

Balanced
Income Statement
Revenue (RE)
Net Income
Unadjusted
Trial Balance
80000
33,321
0
2,814
0
110,507
Balance Sheet
Cash (A)
482,636
524,930
-78961
Intangibles (A)
31,902
0
Total Assets
960,507
0
Total Liabilities
0
850000
110,507
960507
960,507
Common Stock (SE)

Total Equity

DR
99,773
285,151
Intangibles (A)
Cash (A)
31,902
116,690
Cash (A)
2,772
11,039
2,814
9,977
6,402
6,380
Revenue (RE)
80000
Balanced
33,321
Balanced
Post Closing
Balance

80000
33,321
16,380
2,814
6,380
0
0
0
0
0
87,747
482,636
482,636
524,930
524,930
-95,341
-95,341
31,902
-6,380
31,902
-6,380
937,747
0
937,747
0
0
0
850000
850000
87,747 87746.8882353
937746.888235294 937746.888235
937746.888235294 937746.888235
CR
Cash (A)
DR +
CR780,000
Balance
BB
Cash (A)
99,773
99,773
Cash (A)
285,151
285,151
Cash (A)
31,902
31,902
83,369
33,321
16,625
116,690
2,772
0
0
482,636
9,977
6,402
6,380
482,636

16,380
6,380

2,814
87,747
482,636
Balanced
Inventory Account
Items
Cost per Item

x
x
x
Pays $89966 to purchase equipment, have it

delivered for $3689 and installed for $6118.
Has useful life of 10 years an no residual value.
-99,773
Pays $285151 to purchase property that

includes a building valued at $110639 and land
valued at $174512. Building has useful life of
17 years and residual value of $1798
-285,151
Pays $31902 for a customer list for future sales

prospects. The list has an estimated useful life
of 5 years no residual value.
-31,902
Sells a plot of land that has a carrying value of

$83369 for $116690 cash
116,690 Comparison of Cost Flow
Sells a machine that has carrying value of of

$5586 (cost = $16625 and accumulated
depreciation = $11039) for $2772 cash
2,772
Net Change in Cash
-297,364
Left
Methods FIFO
Gain on sale of
PPE (Ga)
Total
Sold
Cost of goods
Available for
Sale
-297,364 Intangibles (A)
0
0
0
Property/Plant/Equipme
Accumulated
nt (A)
Depreciation (XA)
Intangibles (A)
DR+
CRDRCR+
DR+
CR240000
90000
0
DR +
CR-
99,773
285,151
31,902
83,369
16,625
11,039
524,930
78961
31,902
9,977
6,402
524,930
95,341
31,902
524,930
95,341
31,902
Cost per Item
Total
0
0
0
LIFO
Avg Cost
0
#DIV/0!
#DIV/0!
Accumulated
Amortization
(XA)
DRCR+

DRCR+
DR0
0
CR+
DR-
CR+
6,380
6,380
6,380
Retained Earnings
Common Stock (SE)
(SE)
DRCR+
DRCR+
850000
Gain on sale of PPE

Revenue (RE)
(Ga)
DRCR+
DRCR+
80000
0
33,321
850000
80000
33,321
850000
80000
33,321
80000
33,321
850000
87,747
87746.888
Depreciation Expense Amortization Expense Loss on sale of PPE

(Ex)
(Ex)
(Lo)
DR+
CRDR+
CRDR+
CR0
0
0
2,814
2,814
9,977
6,402
6,380
16,380
6,380
2,814
16,380
6,380
2,814
Chart of Accounts
Cash (A)
Date
1/1/2015
Deffered Revenue
1/1/2015
Wages Payable (L)
1/1/2015
Bond Payable (L)
2/1/2015
Premium on Bond Payable (L)

Discount on Bond Payable (XL)
Common Stock (SE)
12/31/2015
Revenue (RE)
12/31/2015

Wage Expense (Ex)
12/31/2015
12/31/2015
EFFECTS OF TRANSACT
Transaction
Amount
Purchases equipment by issuing a 5 year bond. The bond has a

face value of $100,000, coupon rate of 4% and effective rate of
3%. Interest is paid annually. Uses the effective interest method
to amortize any discount or premium on the bond. The
equipment has a useful life of 10 years and no residual value.
Purchases land by issuing a 3 year bond. The bond has a face

value of $80,000, coupon rate of 2% and effective rate of 3% use
the straight line method interest method to amortize and
discount or premium on the bond
Receives $500,000 in cash from a customer for services it will

preform next year
Employees have earned 30,000 in wages. Accures wage expense
that will be paid next year.
500,000
30,000

Interest Expense for bond payable for equipment
Interest Expense for bond payable for land
10,458
Income Statement
Revenue (RE)
Balanced
Unadjusted
Trial Balance
150000
Wage Expense (Ex)
30,000
Net Income
120,000
Balance Sheet
Cash (A)
1,400,000

Total Assets
Deffered Revenue
Wages Payable (L)
Bond Payable (L)
Total Liabilities
Common Stock (SE)
182,317
0
1,582,317
500000
30000
0
180000
4579.70718719
-2,263
712,317
750000

Total Equity
120,000
870000
1,582,317

DR
104,580
Cash (A)
77,737
2,263
500,000
Wage Expense (Ex)
30,000
10,458

863
3,137
$2,354
Revenue (RE)
150000
Balanced
Balanced
Post Closing
Balance
150000
30,000
10,458
5,492
104,050
1,400,000
1,400,000
182,317
182,317
-10,458
-10,458
1,571,859
1,571,859
500000
30000
500000
30000
5600
5600
180000
180000
3717.0984028104 3717.09840281
-1,509
-1,509
717808.5056802 717808.50568
750000
750000
104,050 104050.341704
854050.34170436 854050.341704
1571858.84738456 1571858.84738
CR
Bond Payable (L)
Bond Payable (L)
Cash (A)
DR +
CR900,000
Balance
BB
100,000
4,580
80,000
Deffered Revenue
500,000
Wages Payable (L)
30,000
500,000
0
0
1,400,000
10,458
4,000

1,600
754
1,400,000

Wage Expense (Ex)
10,458
5,492
30,000
104,050
1,400,000
Balanced
Bond Price
Receives $500,000 in cash from a customer for
services it will preform next year
Coupon Rate
500,000
Effective Rate
nper
pmt

500000
fv (face
type
price
Bond Price
Coupon Rate
Effective Rate
nper
Net Change in Cash
500,000
pmt
fv (face
type
price
Deffered Revenue
DR+
CRDRCR+
DRCR+
0
0
0
104,580
77,737
500,000
182,317
500000
10,458
182,317
10,458
500000
182,317
10,458
500000
Amortization Schedule - effective method

Coupon Rate
4.00%
Effective Rate
3.00%
1/1/2015
5.00
1/1/2016
$3,137
4000
-863
4000
1/1/2017
$3,112
4000
-888
100000
0.00
1/1/2018
1/1/2019
$3,085
$3,057
4000
4000
-915
-943
1/1/2020
$3,029
4000
-971
$104,580
Int Exp
pmt
diff
Amortization Schedule - straight line method
Coupon Rate
2.00%
Effective Rate
3.00%
1/1/2015
1600
3.00
1/1/2016
1600
754
$2,354
1600
1/1/2017
1600
754
$2,354
80000
0.00
1/1/2018
1600
754
$2,354
$77,737.11
pmt
diff
Int Exp
DR-
Wages Payable (L)

CR+
Premium on Bond
Bond Payable (L)
Payable (L)
DRCR+
DRCR+
DR0
0
0
100,000
80,000
30,000
30000
180000
4,000
863
1,600
30000
5600
180000
30000
cv
$104,580
$103,717
$102,829
$101,913
$100,971
$100,000
cv
$77,737
$78,491
$79,246
$80,000
5600
180000
Premium on Bond
Discount on Bond
Payable (L)
Payable (XL)
CR+
DR +
CR0
0
Retained Earnings
Common Stock (SE)
(SE)
Revenue (RE)
DRCR+
DRCR+
DR750000
0
4,580
2,263
4579.707
2,263
750000
750000
754
3717.098
1,509
150000
3717.098
1,509
750000
104,050
104050.34
Revenue (RE)
Wage Expense (Ex)
(Ex)
CR+
DR+
CRDR+
CRDR+
CRDR+
150000
0
0
0
0
0
30,000
150000
30,000
10,458
3,137
2,354
150000
30,000
10,458
5,492
10,458
5,492
30,000
0
CR-
Chart of Accounts
Cash (A)
Date
1/1/2015
1/1/2015
Wages Payable (L)
1/1/2015
Bond Payable (L)
2/1/2015

Common Stock (SE)
12/31/2015
Revenue (RE)
12/31/2015

Wage Expense (Ex)
12/31/2015
12/31/2015
EFFECTS OF TRANSACT
Transaction
Amount
Purchases equipment by issuing a 5 year bond. The bond has a

face value of $100000, a coupon rate of 7% and an effective rate
of 6%. Interest is paid annually. Use the effective interest method
to amortize any discount or premium on the bond. The
equipment has a useful life of 3 years and no residual value.
Purchases land by issuing a 6 year bond. The bond has a face

value of $60000, a coupon rate of 5% and an effective rate of
8%.
Receives $263921 from a customer for services it will provide

next year
Employees have earned $88381 in wages. Accrues wage
expense that will be paid next year
263,921
88,381

Interest Expense for bond payable for equipment
Interest Expense for bond payable for land
34,737
Income Statement
Revenue (RE)
Balanced
Unadjusted
Trial Balance
150000
Wage Expense (Ex)
88,381
Net Income
61,619
Balance Sheet
Cash (A)
1,163,921

Total Assets
Wages Payable (L)
Bond Payable (L)
Total Liabilities
Common Stock (SE)
155,891
0
1,319,812
263921
88381
0
160000
4212.36378557
-8,321
508,193
750000

Total Equity
61,619
811619
1,319,812

DR
104,212
Cash (A)
51,679
8,321
263,921
Wage Expense (Ex)
88,381
34,737

747
6,253
$4,387
Revenue (RE)
150000
Balanced
Balanced
Post Closing
Balance
150000
88,381
34,737
10,640
16,242
1,163,921
1,163,921
155,891
155,891
-34,737
-34,737
1,285,075
1,285,075
263921
88381
263921
88381
10000
10000
160000
160000
3465.1056126997 3465.1056127
-6,934
-6,934
518832.786116758 518832.786117
750000
750000
16,242 16241.9396785
766241.939678489 766241.939678
1285074.72579525
1285074.7258
CR
Bond Payable (L)
Bond Payable (L)
Wages Payable (L)
Cash (A)
DR +
CR900,000
Balance
BB
100,000
4,212
60,000
263,921
263,921
88,381
0
0
1,163,921
34,737
7,000

3,000
1387
1,163,921

Wage Expense (Ex)
34,737
10,640
88,381
16,242
1,163,921
Balanced
Bond Price
Receives $263921 from a customer for services
it will provide next year
Coupon Rate
263,921
Effective Rate
nper
pmt

263921
fv (face
type
price
Bond Price
Coupon Rate
Effective Rate
nper
Net Change in Cash
263,921
pmt
fv (face
type
price
DR+
CRDRCR+
DRCR+
0
0
0
104,212
51,679
263,921
155,891
263921
34,737
155,891
34,737
263921
155,891
34,737
263921

Coupon Rate
7.00%
Effective Rate
6.00%
Int Exp
pmt
diff
5.00
1/1/2016
$6,253
7000
-747
7000
1/1/2017
$6,208
7000
-792
100000
0.00
1/1/2018
1/1/2019
$6,160
$6,110
7000
7000
-840
-890
1/1/2020
$6,057
7000
-943
$104,212
Coupon Rate
5.00%
Effective Rate
8.00%
pmt
diff
Int Exp
3000
6.00
1/1/2016
3000
1387
$4,387
3000
1/1/2017
3000
1387
$4,387
60000
0.00
1/1/2018
1/1/2019
3000
3000
1387
1387
$4,387
$4,387
1/1/2020
1/1/2021
3000
3000
1387
1387
$4,387
$4,387
$51,678.82
DR-
Wages Payable (L)

CR+
Premium on Bond
Bond Payable (L)
Payable (L)
DRCR+
DRCR+
DR0
0
0
100,000
60,000
88,381
88381
160000
7,000
747
3,000
88381
10000
160000
88381
cv
$104,212
$103,465
$102,673
$101,833
$100,943
$100,000
cv
$51,679
$53,066
$54,453
$55,839
$57,226
$58,613
$60,000
10000
160000
Premium on Bond
Discount on Bond
Payable (L)
Payable (XL)
CR+
DR +
CR0
0
Retained Earnings
Common Stock (SE)
(SE)
Revenue (RE)
DRCR+
DRCR+
DR750000
0
4,212
8,321
4212.364
8,321
750000
750000
1387
3465.106
6,934
150000
3465.106
6,934
750000
16,242
16241.94
Revenue (RE)
Wage Expense (Ex)
(Ex)
CR+
DR+
CRDR+
CRDR+
CRDR+
150000
0
0
0
0
0
88,381
150000
88,381
34,737
6,253
4,387
150000
88,381
34,737
10,640
34,737
10,640
88,381
0
CR-
Chart of Accounts
Cash (A)
Date
1/1/2015
Dividend Payable (L)
1/1/2015
1/1/2015
1/1/2015
Bond Payable (L)
5/1/2015
Additional Paid In Capital (SE)
6/1/2015
Treasury Stock (XSE)

Common Stock at par (SE)
10/1/2015
12/31/2015
Revenue (RE)
12/31/2015

12/31/2015
EFFECTS OF TRANSACT
Transaction
Issued 7,000 shares of common stock with par value of $0.50 per
share and market value of $60 per share
Amount
7,000.00
60.00
Declares a $0.24 per share dividend, to be paid on10/01/15 to

shareholders of record 01/01/2015
1,680
Pays $50,000 to purchase equipment that has an estimated

useful life of 20 years and no residual value
50,000
Issues a 3 year bond for cash. The bond has a face value of
$60,000, coupon rate of 3% and effective rate of 3%. Interest is
payable each year
60,000
Repurchases 110 shares of its own sahres for $55 per share
Receives $52,000 from customers for services preformed
Pays declared dividend to shareholders.
Interest Expense for bond payable

6,050
52,000
1,680
20
Income Statement
Revenue (RE)
Balanced
Unadjusted
Trial Balance
52000
Net Income
52,000
Balance Sheet
Cash (A)
519,270
Total Assets
Bond Payable (L)
Total Liabilities
Total Equity
50,000
569,270
0
0
0
60000
60,000
3500
95,320
416500
-6,050
509270
569,270

DR
Cash (A)
420,000
1,680
50,000
Cash (A)
60,000

Cash (A)
6,050
52,000
1,680
2,500
1,800
Revenue (RE)
52000
Balanced
Balanced
Post Closing
Balance
52000
2,500
1,800
47,700
519,270
519,270
50,000
50,000
-2,500
-2,500
566,770
566,770
0
0
0
0
1800
60000
61800
3500
91,020
416500
-6,050
504970
1800
60000
61800
3500
91020
416500
-6,050
504970
566770
566770
CR

Balance
BB
3,500
1,680
50,000
Bond Payable (L)
60,000
Revenue (RE)
Cash (A)
420,000
416,500
Cash (A)
Cash (A)
DR +
Cash (A)
CR45,000
50,000
60,000
6,050
52,000
6,050
52,000
1,680
1,680
519,270
2,500
1,800
519,270
2,500
1,800
47,700
519,270
Balanced
Bond Price
Receives $52,000 from customers for services
preformed
Coupon Rate
52,000
Effective Rate
nper
pmt

Investing
Activities
Pays $50,000
to purchase equipment that has
an estimated useful life of 20 years and no
residual value
-50,000
price
-50,000
Bond Price
Financing
Activities
Issued 7,000
shares of common stock with par
value of $0.50 per share and market value of
$60 per share
52000
fv (face
type
Coupon Rate
420,000
Effective Rate
Issues a 3 year bond for cash. The bond has a

face value of $60,000, coupon rate of 3% and
effective rate of 3%. Interest is payable each
year
60,000
nper
Repurchases 110 shares of its own sahres for

$55 per share
-6,050
pmt

-1,680
472,270
Net Change in Cash
474,270
fv (face
type
price
DR+
CRDRCR+
DRCR+
0
0
0
50,000
50,000
2,500
50,000
2,500
50,000
2,500

Coupon Rate
3.00%
Effective Rate
3.00%
Int Exp
pmt
diff
3.00
1/1/2016
$1,800
1800
1800
1/1/2017
$1,800
1800
60000
0.00
1/1/2018
1/1/2019
$1,800
$1,800
1800
1800
0
0
1/1/2020
$1,800
1800
$60,000
Coupon Rate
5.00%
Effective Rate
8.00%
pmt
diff
Int Exp
3000
6.00
1/1/2016
3000
1387
$4,387
3000
1/1/2017
3000
1387
$4,387
60000
0.00
1/1/2018
1/1/2019
3000
3000
1387
1387
$4,387
$4,387
1/1/2020
1/1/2021
3000
3000
1387
1387
$4,387
$4,387
$51,678.82

DRCR+
Additional Paid In
Bond Payable (L)
Capital (SE)
DRCR+
DRCR+
DR0
0
0
1,680
60,000
1,680
0
60000
1,800
1800
60000
1800
60000
cv
$60,000
$60,000
$60,000
$60,000
$60,000
$60,000
cv
$51,679
$53,066
$54,453
$55,839
$57,226
$58,613
$60,000
Additional Paid In
Common Stock at par Retained Earnings
Capital (SE)
(SE)
(SE)
Revenue (RE)
CR+
DR +
CRDRCR+
DRCR+
DR0
0
0
45000
3,500
416,500
1,680
6,050
416500
6,050
3500
43320
416500
6,050
3500
43320
52000
416500
6,050
3500
47,700
91020
Revenue (RE)
CR+
DR+
0
0
CR0
(Ex)
DR+
CRDR+
CRDR+
0
0
0
0
52,000
52000
2,500
1,800
52000
2,500
1,800
2,500
0
1,800
0
CR-
Chart of Accounts
Cash (A)
Date
1/1/2015
1/1/2015
1/1/2015
1/1/2015
Bond Payable (L)
5/1/2015
6/1/2015

10/1/2015
12/31/2015
Revenue (RE)
12/31/2015

12/31/2015
EFFECTS OF TRANSACT
Transaction
Issued 4793 shares of common stock with par value of $2 per

share and market value of $60 per share
Amount
4,617.00
62.00
Declares a $0.33 per share dividend, to be paid on 2015-10-01 to

shareholders of record on 2015-01-01
877
Pays $44606 to purchase equipment that has an estimated

useful of 5 years
52,171
Issues a 4 year bond for cash. The bond has a face value of
$62000, coupon rate of 2% and effective rate of 2%. Interest is
payable each year
62,000
Repurchases 110 shares of its own stock for $49 per share
Receives $75861 from customer for services it performed
Interest Expense for bond payable

4,508
74,293
877
8
Income Statement
Revenue (RE)
Balanced
Unadjusted
Trial Balance
74293
Net Income
74,293
Balance Sheet
Cash (A)
409,991
Total Assets
Bond Payable (L)
52,171
462,162
0
0
Total Liabilities
Total Equity
0
62000
62,000
4617
118,416
281637
-4,508
400162
462,162

DR
Cash (A)
286,254
877
52,171
Cash (A)
62,000

Cash (A)
4,508
74,293
877
6,521
2,480
Revenue (RE)
74293
Balanced
Balanced
Post Closing
Balance
74293
6,521
2,480
65,292
409,991
409,991
52,171
52,171
-6,521
-6,521
455,641
455,641
0
0
0
0
2480
62000
64480
4617
109,415
281637
-4,508
391160.625
2480
62000
64480
4617
109414.625
281637
-4,508
391160.625
455640.625
455640.625
CR

Balance
BB
DR +
4,617
877
52,171
Bond Payable (L)
62,000
Revenue (RE)
Cash (A)
286,254
281,637
Cash (A)
Cash (A)
Cash (A)
CR45,000
52,171
62,000
4,508
74,293
4,508
74,293
877
877
409,991
6,521
2,480
409,991
6,521
2,480
65,292
409,991
Balanced
Bond Price
Receives $75861 from customer for services it
performed
Coupon Rate
74,293
Effective Rate
nper
pmt

74293
fv (face
type
Pays $44606 to purchase equipment that has

an estimated useful of 5 years
-52,171
price
-52,171
Bond Price
Financing
Issued 4793Activities
shares of common stock with par
value of $2 per share and market value of $60
per share
Coupon Rate
286,254
Issues a 4 year bond for cash. The bond has a

face value of $62000, coupon rate of 2% and
effective rate of 2%. Interest is payable each
year
62,000
nper
Repurchases 110 shares of its own stock for $49

per share
-4,508
pmt

-877
342,869
Net Change in Cash
364,991
Effective Rate
fv (face
type
price
DR+
CRDRCR+
DRCR+
0
0
0
52,171
52,171
6,521
52,171
6,521
52,171
6,521

Coupon Rate
4.00%
Effective Rate
4.00%
Int Exp
pmt
diff
3.00
1/1/2016
$2,480
2480
2480
1/1/2017
$2,480
2480
62000
0.00
1/1/2018
1/1/2019
$2,480
$2,480
2480
2480
0
0
1/1/2020
$2,480
2480
$62,000
Coupon Rate
4.00%
Effective Rate
4.00%
pmt
diff
Int Exp
2480
3.00
1/1/2016
2480
$2,480
2480
1/1/2017
2480
$2,480
62000
0.00
1/1/2018
1/1/2019
2480
2480
0
0
$2,480
$2,480
1/1/2020
1/1/2021
2480
2480
0
0
$2,480
$2,480
$62,000.00

DRCR+
Additional Paid In
Bond Payable (L)
Capital (SE)
DRCR+
DRCR+
DR0
0
0
877
62,000
877
0
62000
2,480
2480
62000
2480
62000
cv
$62,000
$62,000
$62,000
$62,000
$62,000
$62,000
cv
$62,000
$62,000
$62,000
$62,000
$62,000
$62,000
$62,000
Additional Paid In
Common Stock at par Retained Earnings
Capital (SE)
(SE)
(SE)
Revenue (RE)
CR+
DR +
CRDRCR+
DRCR+
DR0
0
0
45000
4,617
281,637
877
4,508
281637
4,508
4617
44123
281637
4,508
4617
44123
74293
281637
4,508
4617
65,292
109414.63
Revenue (RE)
CR+
DR+
0
0
CR0
(Ex)
DR+
CRDR+
CRDR+
0
0
0
0
74,293
74293
6,521
2,480
74293
6,521
2,480
6,521
0
2,480
0
CR-
Net Income
Net Sales (Revenue)
Total Assets
Total shareholders' equity
Check
roe
profit margin
asset turnover
financial average
NI
SE
Jun. 30, 2015 Jun. 30, 2014 Jun. 30, 2013

12193
22074
21863
93580
86833
77849
176223
172384
142431
80083
89784
78944
14.36%
26.17%
27.69%
14.36%
26.17%
27.69%
13.03%
25.42%
28.08%
0.5368796381 0.5516446167 0.5465734285
2.0522349838 1.8658136172 1.8042029793
NI
Sales
Sales
Assets
Assets
Equity
Net Income
Net Sales (Revenue)
Total Assets
Total shareholders' equity
Check
roe
profit margin
asset turnover
financial leverage
NI
SE
Sept. 26, 2015 Sept. 27, 2014 Sept. 28, 2013

Company: Facebook
3,688.00
2,940
1,500
17,928.00
12,466
7872
49407
39,966
17,895
44,218
36,096
15,470
9.18%
9.18%
20.57%
0.4011949918
1.1127947805
NI
Sales
11.40%
11.40%
23.58%
0.4308947305
1.1220765621
Sales
Assets
9.70%
9.70%
19.05%
0.4398994132
1.1567550097
Assets
Equity
Company: Facebook

Cummingm

Uploaded by

Copyright:

Available Formats

Cummingm

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cummingm

Uploaded by

Copyright:

Available Formats

Chart of Accounts

Balance Sheet Check

EFFECTS OF TRANSACTIONS ON ACCOUNTS

EFFECTS OF TRANSACTIONS ON ACCOUNTS

10,000 Common Stock

700 Accounts Payable

Balance Sheet Check

EFFECTS OF TRANSACTIONS ON ACCOUNTS

101042 Common Stock

50,379 Accounts Payable

Paid Rent Expense (A)

Accumulated Depreciation (XA)

Accounts Payable (L)

Deferred Revenue (L)

Interest Payable (L)

Note Payable (L)

EFFECTS OF TRANSACTIONS ON ACCOUNTS

Borrows from bank for 5 years interest is 12%

Received cash from customer for services it

Pays landlord for rent for the next year

Deferred Revenue (L)

Received cash from customer for services it

Borrows from bank for 5 years interest is 12%

Net Change in Cash

EFFECTS OF TRANSACTIONS ON ACCOUNTS

200,000 Common Stock (SE)

40,000 Cash (A)

50,000 Accounts Payable (L)

65000 Revenue (RE)

Cost of Revenue (Ex)

42000 Inventory (A)

44000 Note Payable (L)

24000 Deferred Revenue (L)

Paid Rent Expense (A)

12,000 Cash (A)

Cost of Revenue (Ex)

Interest Expense (Ex)

Paid Rent Expense (A)

Accumulated Depreciation (XA)

Accounts Payable (L)

Deferred Revenue (L)

Interest Payable (L)

Note Payable (L)

EFFECTS OF TRANSACTIONS ON ACCOU

Borrows from a bank for 5 years. The interest rate

Received cash from customer for services it will

Pays landlord for rent for the next year

Deferred Revenue (L)

Received cash from customer for services it will

Borrows from a bank for 5 years. The interest rate

Net Change in Cash

EFFECTS OF TRANSACTIONS ON ACCOUNTS

412,661 Common Stock (SE)

89,688 Cash (A)

42,564 Accounts Payable (L)

42419 Revenue (RE)

Cost of Revenue (Ex)

28092 Inventory (A)

68413 Note Payable (L)